Monday, September 19, 2016

CASE STUDY 2: AIR ASIA - NOW EVERYONE CAN FLY




ANSWER:


Question 1

Five of competitive advantages used by Air Asia :-

  • Air Asia's has largest low fare, no frills airline.
  • Fully ticketless travel.
  • Unassigned seats.
  • Low cost travelling in Asia.
  • Has a crew productivity level that is triple that of Malaysia Airline.



Question 2

The Porter's Generic Strategies were applied by Air Asia in the case study and explain with examples :-


According to the Porter's Generic Strategies Air Asia has applied the cost leadership strategies which is operating their business in broad market such as offered the low cost airlines fare. Besides, Air Asia also offered the customer with a low prices of tickets compares to other company which is provide high price of tickets such as Malaysian Airlines Systems (MAS). Next, they has a good services such as has a crew productivity level that of Malaysia Airline. So, that Air Asia has applied the cost leadership strategy.



Question 3

Based on Porter's Five Forces Model, analyze Air Asia's buyer power and supplier power :-


Based on Porter's Five Forces Model, the buyer power of Air Asia is low because when Air Asia pioneered low cost travelling in Asia, their customer do not have many choices to buy from other airline. So they buy their tickets with Air Asia. That time the buyer power is low. Air Asia also known as the first mover because they the first airline that introduce the low cost travelling in Asia.



The supplier power of Air Asia is high when three have many airline that also make the low cost travelling such as Tiger Air Ways, Jetstar, Nok Air, Lion Air and Cebu Pacific. So, people will buy their ticket with other airline and not just buy with Air Asia because now they have many choices to buy the ticket. This time the buyer power is high.

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